Summary - PATRICK HOUSE, 6, GOSFORTH PARK AVENUE NE12 8EG
1 bed 1 bath Office
Income-producing asset with established tenants and on-site parking.
Freehold modern two-storey office, c.8,200 sq ft (762 sqm)
A freehold, purpose-built two-storey office in a well-located business park, offered as a sale-and-leaseback with a combined passing rent of £150,000 pa. The vendor proposes new unbroken 10-year leases from completion, with an RPI-linked rent review (year 5, 4% cap / 2% collar). The building extends to c.8,200 sq ft (762 sqm) with demised car parking and a modern glazed façade suited to office, R&D or light industrial occupiers.
This is a clear income purchase for an investor seeking immediate cashflow: two established occupiers, Homecare Plus Ltd (CreditSafe 77/A) and Hold Group Ltd (CreditSafe 56/B), produce a headline average passing rent of c.£18.30 psf. The sale is quoted with a market guide and illustrative yield (vendor previously sought offers in excess of £1.8m, net initial yield c.7.87% assuming purchaser costs of 5.92%).
Buyers should note material drawbacks upfront. The proposed lease term is only ten years from completion — a short unexpired term which will deter many mortgage lenders and reduce the pool of debt finance options. The immediate location metrics show above-average crime, significant local deprivation, and very slow broadband speeds, all of which may affect occupational demand and re-letting prospects at expiry.
This asset suits a buy-and-hold investor or an owner-occupier with cash financing who values immediate income, on-site parking and a modern building footprint. Consideration should be given to lease covenant strength, reversion planning ahead of the 10-year expiry, and operational upgrades (notably connectivity improvements) to future-proof the asset.
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